Managing My Money
Week 6: Housing & the Household Balance Sheet - Part 1, Episode 11
Share Radio & Open University Business School
'An Englishman's home is his castle'.
Anon
Welcome
to Managing My Money presented by Glen Goodman and Annie Weston
Getting on the Housing ladder
Where is affordable?
But renting is ..
- 'Paying someone else's mortgage'
- 'Dead money'
- 'Not helping with building retirement savings'
Mortgages taken into re-possession: a thankfully rare event
Mortgages - the basics
- A loan secured against your property
- A larger deposit can mean a lower interest rate
- 'Loan to Value' ratio helps measure your own 'equity'
- Different types of loan: fixed rate, variable, tracker ..
- Different methods of repayment
The perils of negative equity
.. of sitting and waiting until prices recover
Different types of loan
- Fixed, variable, tracker rates
- Offset mortgages - can deduct deposit balance(s)
- Flexible - can vary your payments
- Shared ownership
- Repayment, Interest-only, Endowment
The pattern of interest and capital repayment changes over time although the total may remain constant
They're all waiting to take your money
Gazumping: the occupational hazard of house-buying
Happiness .. is a new home
Next:
Listen to Part 2 of Week 6 on Share Radio - then take the Week 6 quiz/test. As you take each week of the course, your results will build up on your personal dashboard.
Managing My Money
is broadcast by Share Radio and is based on the Open University Business School online course of the same name.
Your presenters are Glen Goodman and Annie Weston.